Taskin Ahmed, president of Dhaka Chamber of Commerce and Industry (DCCI), has commented that the decision to increase the duty, tax rate and increase the price of gas in industry is suicidal for the economy.

He said this in an exchange meeting titled ‘Overall situation of contemporary economy of the country and year-long action plan of DCCI in 2025’ with media representatives at Motijheel DCCI office on Saturday (January 11).

In the press conference, the DCCI President gave a detailed presentation on the 11 issues of the economy, as well as presented keynotes on the action plan of the DCCI in 2025.

He said, global geopolitical instability, its impact on international and local economy, foreign exchange reserves, increase in import cost, high energy cost and uncertainty of uninterrupted energy availability, high inflation, obstacles in obtaining loans and high interest rates, high duty rates, increase in VAT rates. And above all, the private sector of the country is already facing quite a challenge due to the deteriorating law and order situation etc.

The DCCI president said that the global geopolitical instability, the existing challenges of the international and local economy include the increase in VAT on hundreds of products, the increase in the tax rate of several products and the doubling of the price of gas in the industry. The initiative to increase more is a suicidal decision for the overall economy, including our trade and investment.

Regarding the proposal to increase the price of gas, the president of Dhaka Chamber of Commerce and Industry (DCCI) said that the price of gas per unit of industry and captive has recently increased from Tk 30 and Tk 31.50 paise to Tk 75 respectively. It is proposed to more than double by raising 72 paise.

Regarding the proposal to increase the price of gas, the President of the Dhaka Chamber of Commerce and Industry (DCCI) said, “It has recently been proposed to more than double the price of gas per unit for industry and captives from Tk 30 and Tk 31.50 paisa respectively to Tk 75.72 paisa. Initiatives have been taken to double VAT and customs duty on about 43 products. At present, the NBR has decided to increase the income tax on motorcycles, essential refrigerators and compressors, which are one of the means of communication, from 10 percent to 20 percent.”

What magic is there in our industry where fuel prices are often hiked, he said. Gas prices have been increased by 300 percent in the last three years. The proposed rate will increase by 400 percent if it is implemented. In the economic situation, the proposal to increase the price of gas and the increase in VAT on various products will challenge the country’s economy. It will disrupt production and reduce competitiveness. To overcome the existing economic challenges by ensuring a business-friendly environment, the joint initiative of the government as well as the stakeholders is essential. I demand the government to reconsider the initiative of increasing VAT and tax rate at this moment to reduce the pressure on business operating expenses and inflation.

DCCI president said, we have the first meeting of the new board of the new year. We want to work on creating new markets for various export-oriented industries including the apparel sector. We will work with the apparel market in Latin America and Africa, where jute and jute products, leather, agriculture, toys, electrical products will also go. We want to work with small, medium and micro industries. Where defaulters are high in our big industries, there are no defaulters in the CSMEA industry. We want to do something for them.

Regarding the initiative to increase investment, he said, if any foreign company comes to invest in this country, it has to take the approval of many departments and branches. Even to create a domestic entrepreneurial initiative, 31 papers have to be submitted. We want it to be easy, and we will continue to work towards that goal. If this is not done, foreign investment will not come, and domestic investment will not be created.

Regarding the political situation, he said, we have to keep politics and economics separate. I urge all concerned not to mix politics with economics.

He said that this year, Dhaka Chamber will lay more emphasis on reducing interest rates, controlling inflation and keeping foreign currency exchange rates stable.